David Beckham has decided to start up a new MLS team in Miami, but will it
work? Ben Rumsby answers the hows and the whys...

Why does Beckham want to be a team owner anyway? This has been part of Beckham's retirement plan since he joined the Los Angeles Galaxy six years ago. An option to set up a Major League Soccer franchise at a 25 per cent discount was written into his contract, a clause which he is now exercising.

A lot of noise was made about Beckham boosting the profile of football in America when he arrived in LA and this is another manifestation of that. It remains to be seen whether he actually makes money from the enterprise.

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So, how much is this going to cost Goldenballs? The initial discounted fee for what is called an 'expansion franchise' is £16 million but it will cost hundreds of millions more to build that franchise from scratch, particularly when it comes to recruiting players and possibly constructing a stadium. The Beckhams' personal fortune is around £200m and he is therefore looking for serious outside investment, with interest said to be high. Business partner Simon Fuller is likely to be a significant shareholder.

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What happens next? Tuesday was merely confirmation that Beckham had settled on Miami as the location for his proposed team, having also considered Montreal, San Diego and Orlando. Miami was always the favourite, with Beckham visiting there this summer to discuss the viability of setting up a franchise. He now needs MLS approval to do so, after which he hopes to have a team up and running by 2016.

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Where will they play Beckham's representatives have been scouring Miami for sites for a purpose-built stadium, which they want to base in the "urban core". If a new stadium is incomplete or simply ruled out once the team is established, they could play at the Miami Dolphins' 75,000-capacity Sun Life Stadium or, more likely, at a 20,000-seater ground at Florida International University. Beckham visited both this summer.

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His team just walks straight into the MLS? Essentially, yes. Football in America operates under the same franchise system used in most of its professional sports. The MLS are looking to expand from 19 to 24 teams by 2020 and Beckham's new venture would be part of that. New York City FC, launched by Manchester City and the New York Yankees, will be the 20th team from 2015.

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Is there appetite for football in Miami? Historically, no. The city's previous attempt at an MLS team saw the Miami Fusion shut down in 2001, due to poor attendances, just three years after being set up. But, then, they were not backed by the one of the most famous men on the planet, whose star power could entice both fans and – perhaps more importantly – big-name players.

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Any other stumbling blocks? Beckham is far from the only investor looking to set up an MLS franchise, with 12 rivals also keen to break into football in America. Most of them are going to be left disappointed, although it seems unlikely the former England captain will be among them.

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So Becks is back off to America? That is unlikely any time soon, with the Beckhams having set themselves up in London at a key time in the lives of their four children. He will doubtless make plenty of trips to Miami but the Premier League is full of absentee owners and seems to roll along quite nicely.